Hi,
I have an incredible off market opportunity. The seller is selling his 4 family Brownstone and whoever buys this property will have first dibs on the property next door which is condemned and owned by the city. This package deal is an unbelievable value. The buyer may only purchase property one, but property two can only be bought if you buy property one.
There are a few different options with this packaged deal. The seller is willing to work with a buyer who is financing. A lot of times these deals can only be all cash, but this one is different. The property has a 3.4% cap rate right now which is very low considering the average is 4-5%. It has the potential to be a 7% by raising the rents to what they should be. The owner is wanted quality tenants in his building so he charged less on monthly rent.
Option 1: Buy both houses, keep the renovated 4 family, and sell the one next door. We could quickly put it on the market and there would be a crazy bidding war. You could make a couple hundred thousand dollars by doing NOTHING!!
Option 2: Keep both properties. Renovate the condemned one and sell it once it’s completed. You would make at least a $1 million dollar profit.
Option 3: Keep both properties as buy and holds and ride the appreciation roller coaster. If you would like to see current market reports I can provide them. Property values are up 10% from this time last year. What a GREAT return, huh?
Property One: 4 Family - Fully Renovated & Rented
~ The property for sale is a renovated 4 family house located a couple blocks away from PATH train on Grove Street between Grand & Montgomery Street. Each unit features a washer/dryer, marble floors & granite counter tops. All tenants signed a one year lease 2 months ago. The owner wanted quality tenants and priced each unit way below market. I provided rental rates below for the Downtown Jersey City area. The seller is asking $2.5 million and is very firm on that price. The exact same house just sold across the street a month ago for $2.5 million. The seller will be paying commission cost.
Property Description
~ Ground Floor: 2 Bed / 2 Bath with backyard access - $2500 / month
~ 1st Floor: 2 Bed / 1 Bath with a Balcony - $2000 / month
~ 2nd Floor: 2 Bed / 1 Bath with a Balcony - $2000 / month
~ 3rd Floor: 2 Bed / 1 Bath - $2000 / month
Total Income = $102,000 ($8500 / month)
Total Expenses: $16,477 ($1373 / month)
Flood Insurance = $3588
Homeowners Insurance = $6738
Water/Sewer = $1251
PSE&G = $1300
Super (optional) $300x12 = $3600
NET INCOME = $85,523
Property Two: 4 Family - Condemned/Boarded Up - In need of Total Reno
The house next door is also a 4 family brownstone that needs a gut renovation. Years ago somebody tried to renovate the house without permits and the city shut it down. The house has been vacant for many years and the city is asking $500-$600K. The ARV is $2.5 million.
Rental Rates - Downtown Jersey City (based off MLS)
2 Bed / 1 Bath
Low = $1900, High = $3200, Average = $2655, Median = $2675
2 Bed / 2 Bath
Low = $2200, High = $6000, Average = $3518, Median = $3500
Keywords: Jersey City / Hudson County / North Jersey / Multi-Family / Investment
Thanks for reading! I look forward to hearing from you!
~Andrea - (973)951-1608
